1 00:00:00,120 --> 00:00:03,320 Speaker 1: Good morning everybody. Welcome to the Daily Zara. Why does 2 00:00:03,360 --> 00:00:05,800 Speaker 1: it cost one hundred dollars to fill up my Kia serato? 3 00:00:05,960 --> 00:00:08,239 Speaker 1: That is the question we're going to be attacking on 4 00:00:08,320 --> 00:00:10,319 Speaker 1: today's podcast. We're going to be joined by Tom Crowley, 5 00:00:10,320 --> 00:00:12,520 Speaker 1: who's going to lay down the law and tell us 6 00:00:12,560 --> 00:00:14,600 Speaker 1: why on earth not only is my car going to 7 00:00:14,600 --> 00:00:15,960 Speaker 1: take more to run on the road, but why my 8 00:00:16,000 --> 00:00:19,960 Speaker 1: coffee could soon be seven dollars Before that, Zora take 9 00:00:20,000 --> 00:00:21,400 Speaker 1: us through the headlines of the morning. 10 00:00:23,079 --> 00:00:26,639 Speaker 2: Heading overseas first, and according to the UN, over three 11 00:00:26,760 --> 00:00:30,040 Speaker 2: million people have fled Ukraine since Russia invaded the nation. 12 00:00:30,760 --> 00:00:33,680 Speaker 2: Most refugees have fled to countries that border Ukraine, with 13 00:00:33,880 --> 00:00:37,320 Speaker 2: close to two million people going to Poland. Around three 14 00:00:37,400 --> 00:00:40,440 Speaker 2: hundred thousand refugees have also fled into Western Europe. 15 00:00:41,520 --> 00:00:44,360 Speaker 1: Meanwhile, back here at home, the Queensland Government has announced 16 00:00:44,400 --> 00:00:47,960 Speaker 1: a Queensland zero emission vehicle strategy that includes a three 17 00:00:48,000 --> 00:00:51,680 Speaker 1: thousand dollars electric vehicle subsidy for cars under fifty eight 18 00:00:51,720 --> 00:00:55,040 Speaker 1: thousand dollars. Forty five million bucks will be spent over 19 00:00:55,080 --> 00:00:57,640 Speaker 1: the next three years for the subsidies. The state government 20 00:00:57,680 --> 00:01:00,680 Speaker 1: will also spend ten million dollars on building more charging 21 00:01:00,720 --> 00:01:02,800 Speaker 1: stations for the electric vehicles. 22 00:01:03,800 --> 00:01:07,760 Speaker 2: According to South Korea's military, North Korea fired an unknown 23 00:01:07,800 --> 00:01:11,720 Speaker 2: projectile yesterday. South Korea's military said of the incident, it's 24 00:01:11,800 --> 00:01:15,240 Speaker 2: presumed that it failed immediately after launch. The launch is 25 00:01:15,280 --> 00:01:18,440 Speaker 2: suspected to have occurred on an airfield outside North Korea's 26 00:01:18,480 --> 00:01:21,520 Speaker 2: capital of Pyongyang, and it's been alleged by the US 27 00:01:21,560 --> 00:01:24,440 Speaker 2: that several tests have occurred on the airfield, including the 28 00:01:24,480 --> 00:01:27,400 Speaker 2: testing of intercontinental ballistic missiles. 29 00:01:28,120 --> 00:01:30,520 Speaker 1: And today's good news, we are headed over the ditch. 30 00:01:30,560 --> 00:01:33,800 Speaker 1: New Zealand Prime Minister Jacinda Adern announced the country's borders 31 00:01:33,840 --> 00:01:37,120 Speaker 1: will open to vaccinated Australians on the twelfth of April. 32 00:01:37,400 --> 00:01:40,080 Speaker 1: Adn also confirmed that as of the first of May, 33 00:01:40,240 --> 00:01:44,160 Speaker 1: vaccinated travelers from visa waiver countries and valid visitor visas 34 00:01:44,200 --> 00:01:53,240 Speaker 1: can also travel to New Zealand. I want to set 35 00:01:53,320 --> 00:01:57,240 Speaker 1: the scene for everyone. I am a humble driver of 36 00:01:57,280 --> 00:02:00,800 Speaker 1: a Kia Serado. This isn't sponsored or anything, but it's 37 00:02:00,840 --> 00:02:02,800 Speaker 1: a good car and one of the good things about 38 00:02:02,840 --> 00:02:05,440 Speaker 1: it is that it's very cheap to fill up with petrol. 39 00:02:05,920 --> 00:02:10,200 Speaker 1: So you can imagine my surprise and disappointment when I 40 00:02:10,240 --> 00:02:13,400 Speaker 1: filled up this week and it was triple figures, over 41 00:02:13,400 --> 00:02:15,200 Speaker 1: one hundred dollars to fill up a tank of petrol. 42 00:02:15,480 --> 00:02:17,720 Speaker 1: Joining me in the studio this morning is Tom Crowley, 43 00:02:17,720 --> 00:02:20,480 Speaker 1: our journalist at the Daily OS. Tom, is this an 44 00:02:20,480 --> 00:02:25,480 Speaker 1: isolated example or are things getting more expensive here in Australia. 45 00:02:25,840 --> 00:02:28,960 Speaker 3: Sounds like a very difficult life there, Sam. I'm not 46 00:02:29,080 --> 00:02:32,120 Speaker 3: a driver and doesn't very often give me occasion to 47 00:02:32,160 --> 00:02:34,360 Speaker 3: be smug, but I've been feeling a little bit smug 48 00:02:34,400 --> 00:02:37,040 Speaker 3: over the last couple of weeks watching everybody else have 49 00:02:37,160 --> 00:02:39,760 Speaker 3: to cough up for petrol. But no, it's not just petrol, 50 00:02:39,880 --> 00:02:42,959 Speaker 3: and it's not just you. The cost of living in Australia, 51 00:02:42,960 --> 00:02:45,280 Speaker 3: and I guess the cost of everyday items has been 52 00:02:45,320 --> 00:02:48,360 Speaker 3: increasing in a number of different areas and for a 53 00:02:48,440 --> 00:02:51,760 Speaker 3: number of different reasons over the last little while. So 54 00:02:51,800 --> 00:02:54,799 Speaker 3: it's not just petrol. We've seen it in supermarkets. We're 55 00:02:54,800 --> 00:02:57,079 Speaker 3: hearing that we might start seeing at a cafes. There 56 00:02:57,120 --> 00:02:59,200 Speaker 3: was a report the other day that coffees might cost 57 00:02:59,240 --> 00:03:01,960 Speaker 3: seven dollars each by the end of the year. So 58 00:03:02,000 --> 00:03:04,600 Speaker 3: there are a number of different kind of everyday items 59 00:03:04,639 --> 00:03:08,400 Speaker 3: in Australia that are increasing. The overall level of prices, 60 00:03:08,440 --> 00:03:10,760 Speaker 3: which we call inflation, in which we've talked about before 61 00:03:10,760 --> 00:03:13,760 Speaker 3: on the POD, is increasing, and it's I think it'd 62 00:03:13,800 --> 00:03:16,840 Speaker 3: be a very significant issue in the next election. It's 63 00:03:16,880 --> 00:03:19,960 Speaker 3: obviously something that matters to people every day. It hits 64 00:03:20,000 --> 00:03:22,280 Speaker 3: them in the hip pocket. It's something that I'm sure 65 00:03:22,280 --> 00:03:25,239 Speaker 3: many of the listeners will have experienced in various parts 66 00:03:25,240 --> 00:03:27,239 Speaker 3: of their lives, even if like me, they don't drive cars. 67 00:03:27,760 --> 00:03:29,840 Speaker 3: So I think it'd be an interesting one to unpack 68 00:03:29,919 --> 00:03:30,720 Speaker 3: a little bit today. 69 00:03:31,000 --> 00:03:34,360 Speaker 1: So kind of taking a step back here, Tom, what 70 00:03:34,440 --> 00:03:38,480 Speaker 1: kind of things impact how much something costs? If we 71 00:03:38,880 --> 00:03:41,840 Speaker 1: strip it right back, what makes petrol expensive? 72 00:03:42,120 --> 00:03:44,200 Speaker 3: Well, the simple answer, Sam, and the annoying answer is 73 00:03:44,200 --> 00:03:47,720 Speaker 3: it's all about supply and demand. That's the economics one 74 00:03:47,800 --> 00:03:49,760 Speaker 3: zero one answer. And I'm sure it's the kind of 75 00:03:49,800 --> 00:03:53,120 Speaker 3: answer that you've heard some plucky business person lets you 76 00:03:53,200 --> 00:03:56,160 Speaker 3: about in the past. Everyone loves talking about supply and demand. 77 00:03:56,200 --> 00:03:58,400 Speaker 3: Their words that get thrown around a lot. They are 78 00:03:58,560 --> 00:04:02,320 Speaker 3: very useful concepts for or understanding how the price of 79 00:04:02,400 --> 00:04:05,200 Speaker 3: petrol or the price of anything is set. And so 80 00:04:05,280 --> 00:04:09,560 Speaker 3: to give a quick refresher, the idea is, first demand, 81 00:04:09,720 --> 00:04:12,800 Speaker 3: how much do people want something. When people want more 82 00:04:12,840 --> 00:04:15,480 Speaker 3: of something, its price goes up, and when they want 83 00:04:15,520 --> 00:04:18,479 Speaker 3: less of something, its price goes down. And then on 84 00:04:18,480 --> 00:04:20,719 Speaker 3: the other hand, you've got supply how much of something 85 00:04:20,800 --> 00:04:24,000 Speaker 3: is there, and when there's lots of something, it costs less. 86 00:04:24,240 --> 00:04:27,160 Speaker 3: When there's not so much of something it's rare, it 87 00:04:27,200 --> 00:04:29,280 Speaker 3: costs more. So that's why I used to be in 88 00:04:29,279 --> 00:04:31,560 Speaker 3: a past life, I used to tutor economics and I've 89 00:04:31,560 --> 00:04:34,599 Speaker 3: got my first class out of the way there. And 90 00:04:34,680 --> 00:04:38,000 Speaker 3: when we want to understand why prices are changing, we 91 00:04:38,080 --> 00:04:40,720 Speaker 3: look for things that are happening that might affect either 92 00:04:40,760 --> 00:04:42,680 Speaker 3: supply or demand, and that gives us this kind of 93 00:04:42,720 --> 00:04:46,320 Speaker 3: framework for understanding where the changes come from. Has something 94 00:04:46,400 --> 00:04:49,600 Speaker 3: happened in the world that might have affected supply or 95 00:04:49,640 --> 00:04:52,520 Speaker 3: affected demand and have this flow on effect on prices. 96 00:04:52,560 --> 00:04:54,560 Speaker 3: So that's they're kind of the tools that we use 97 00:04:54,600 --> 00:04:58,440 Speaker 3: as detectives to unpick why prices might change and why 98 00:04:58,480 --> 00:04:59,720 Speaker 3: in this case they're going up. 99 00:05:00,120 --> 00:05:02,640 Speaker 1: So in our detective mode, now now that we know 100 00:05:02,800 --> 00:05:04,720 Speaker 1: the tool that we're going to be using to try 101 00:05:04,760 --> 00:05:08,080 Speaker 1: and understand the triggers for the rise in the cost 102 00:05:08,120 --> 00:05:11,359 Speaker 1: of living. If you had to pick three things, what 103 00:05:11,600 --> 00:05:15,080 Speaker 1: three factors would you say are affecting the cost of living. 104 00:05:15,640 --> 00:05:17,159 Speaker 1: So the first thing to say is they're going to 105 00:05:17,200 --> 00:05:20,560 Speaker 1: be big things, because you know, we're talking about petrol, 106 00:05:20,560 --> 00:05:22,800 Speaker 1: we're talking about groceries, we're talking about coffee. These are 107 00:05:22,800 --> 00:05:25,840 Speaker 1: things that are bought and sold in huge quantities all 108 00:05:25,880 --> 00:05:30,040 Speaker 1: over the world, and so the forces that can shift 109 00:05:30,080 --> 00:05:32,960 Speaker 1: those prices and can shift supply and demand across the 110 00:05:33,000 --> 00:05:36,280 Speaker 1: world for oil or for food have to be some 111 00:05:36,320 --> 00:05:38,799 Speaker 1: pretty big deals. And so it's probably not a surprise 112 00:05:38,920 --> 00:05:40,480 Speaker 1: that if you ask me to pick the three big 113 00:05:40,520 --> 00:05:43,160 Speaker 1: things that are pushing up prices at the moment, there 114 00:05:43,160 --> 00:05:44,640 Speaker 1: are three things that we hear about a lot in 115 00:05:44,680 --> 00:05:45,760 Speaker 1: all sorts of contexts. 116 00:05:45,760 --> 00:05:48,839 Speaker 3: So we've got COVID, we've got Russia, and we've got 117 00:05:48,839 --> 00:05:51,120 Speaker 3: climate change. That they're almost kind of the big three 118 00:05:51,200 --> 00:05:53,479 Speaker 3: problems facing the world at the moment, and every one 119 00:05:53,480 --> 00:05:56,400 Speaker 3: of them has their part to play in the cost 120 00:05:56,400 --> 00:05:58,359 Speaker 3: of living increases that we're seeing at the moment. 121 00:05:58,680 --> 00:06:01,120 Speaker 1: Okay, some keen to break these down a little bit further, 122 00:06:01,160 --> 00:06:04,880 Speaker 1: Why don't we start with the dreaded COVID nineteen, which 123 00:06:04,880 --> 00:06:08,159 Speaker 1: actually hasn't really been in the headlines that much this year. 124 00:06:08,160 --> 00:06:11,000 Speaker 1: It's sneaking back in with spikes of cases in WA 125 00:06:11,400 --> 00:06:14,600 Speaker 1: and on the East and c board in Australia. What 126 00:06:14,640 --> 00:06:17,640 Speaker 1: can you tell me about how COVID affects supply and demand? 127 00:06:18,040 --> 00:06:20,320 Speaker 3: Yeah, so COVID, as you say, we're a little bit 128 00:06:20,560 --> 00:06:23,280 Speaker 3: maybe sick of hearing and talking about COVID, but its 129 00:06:23,320 --> 00:06:25,960 Speaker 3: effects in many ways are still being felt. And one 130 00:06:25,960 --> 00:06:28,880 Speaker 3: of those ways is on prices. So let me start 131 00:06:28,920 --> 00:06:32,120 Speaker 3: with demand, which again is you know, how much do 132 00:06:32,240 --> 00:06:34,760 Speaker 3: people want to spend on things? How much do people 133 00:06:34,839 --> 00:06:39,440 Speaker 3: want to buy things? And the story with COVID is 134 00:06:39,480 --> 00:06:43,680 Speaker 3: that in high income countries like Australia, like the US, 135 00:06:44,040 --> 00:06:47,279 Speaker 3: like a lot of Europe, you've got two things happening. Firstly, 136 00:06:47,720 --> 00:06:50,880 Speaker 3: there were the people who were not really affected by lockdowns, 137 00:06:50,880 --> 00:06:53,719 Speaker 3: people who could work easily from home. They kept their jobs. 138 00:06:53,839 --> 00:06:56,560 Speaker 3: All that happened was they were stuck inside. Those people 139 00:06:56,640 --> 00:06:59,520 Speaker 3: saved a lot of money, and so savings, for example, 140 00:06:59,520 --> 00:07:03,200 Speaker 3: in Australia increased heaps during lockdowns because people weren't going out, 141 00:07:03,240 --> 00:07:06,280 Speaker 3: they weren't spending as much. So those people are now 142 00:07:06,400 --> 00:07:08,880 Speaker 3: out in the world and they're ready to spend. Of course, 143 00:07:08,920 --> 00:07:11,000 Speaker 3: there were some people who were really badly affected by 144 00:07:11,040 --> 00:07:13,280 Speaker 3: the lockdowns, who lost their jobs and that kind of thing. 145 00:07:13,720 --> 00:07:17,440 Speaker 3: But even those people are often in many cases starting 146 00:07:17,440 --> 00:07:19,160 Speaker 3: to recover. Of course, there'll be some people who are 147 00:07:19,200 --> 00:07:22,120 Speaker 3: still feeling the economic after effects of the pandemic, but 148 00:07:22,240 --> 00:07:24,680 Speaker 3: unemployment is back down low again, it's the lowest it's 149 00:07:24,680 --> 00:07:26,200 Speaker 3: been since two thousand and eight, and so a lot 150 00:07:26,240 --> 00:07:29,000 Speaker 3: of the people who were affected by the economic costs 151 00:07:29,040 --> 00:07:31,360 Speaker 3: of the pandemic, they're back in work, they're earning money, 152 00:07:31,400 --> 00:07:33,760 Speaker 3: and once again they have money to spend. And so 153 00:07:33,840 --> 00:07:36,160 Speaker 3: what that means is that the total kind of demand 154 00:07:36,200 --> 00:07:39,040 Speaker 3: that's coming out of the developed world and high income 155 00:07:39,080 --> 00:07:41,960 Speaker 3: countries like Australias is a lot higher than it was 156 00:07:42,000 --> 00:07:45,840 Speaker 3: a couple of years ago. So higher demand, that's one 157 00:07:45,880 --> 00:07:49,400 Speaker 3: thing that will push prices up. Then, on the supply 158 00:07:49,560 --> 00:07:53,160 Speaker 3: side of things, COVID has created all sorts of disruptions 159 00:07:53,200 --> 00:07:56,480 Speaker 3: around the world in supply chains in the process of 160 00:07:56,520 --> 00:07:59,520 Speaker 3: getting things to the people who want them, So, for example, 161 00:07:59,560 --> 00:08:01,800 Speaker 3: you know or restrictions and a bunch of other kind 162 00:08:01,800 --> 00:08:04,280 Speaker 3: of COVID restrictions just making it a lot harder to 163 00:08:04,360 --> 00:08:07,160 Speaker 3: do general global trade over the last couple of years. 164 00:08:07,200 --> 00:08:09,360 Speaker 3: That's a fairly simple point, but a lot of other 165 00:08:09,440 --> 00:08:13,440 Speaker 3: kind of you know, the pandemic made people buy unusual things, 166 00:08:13,440 --> 00:08:16,320 Speaker 3: people buying exercise equipment for their homes and that kind 167 00:08:16,360 --> 00:08:18,960 Speaker 3: of thing, and so that just created, I guess, kind 168 00:08:19,000 --> 00:08:21,480 Speaker 3: of a lot of disruption to the normal process of 169 00:08:21,520 --> 00:08:24,360 Speaker 3: global supply, and we're still recovering from that disruption, and 170 00:08:24,400 --> 00:08:26,880 Speaker 3: so the result is this kind of bottleneck, a global 171 00:08:26,880 --> 00:08:30,040 Speaker 3: supply bottleneck that will take a while to clear. And 172 00:08:30,080 --> 00:08:32,679 Speaker 3: so while that persists, and while that's kind of you know, 173 00:08:32,760 --> 00:08:35,920 Speaker 3: constraining the ability to supply things, that's another thing that's 174 00:08:35,960 --> 00:08:38,280 Speaker 3: going to push the prices up. So I guess on 175 00:08:38,360 --> 00:08:40,200 Speaker 3: both sides of the leisure and both of the tools 176 00:08:40,200 --> 00:08:42,839 Speaker 3: that we use as kind of price detectives, you can 177 00:08:42,880 --> 00:08:46,360 Speaker 3: see forces unleashed by COVID which are pushing prices in 178 00:08:46,400 --> 00:08:47,200 Speaker 3: an upward direction. 179 00:08:47,520 --> 00:08:49,680 Speaker 1: And so then switching to something that is in the 180 00:08:49,720 --> 00:08:52,120 Speaker 1: news every single day at the moment, and that is 181 00:08:52,200 --> 00:08:56,640 Speaker 1: the ongoing invasion of Ukraine by Russia, how does that 182 00:08:56,640 --> 00:09:00,120 Speaker 1: play into how much things cost here in Australia. 183 00:09:00,120 --> 00:09:02,000 Speaker 3: Gain quite a bit And this is something that I've 184 00:09:02,040 --> 00:09:04,160 Speaker 3: spoken a little bit on the podcast before. I think 185 00:09:04,160 --> 00:09:06,120 Speaker 3: it seems almost every time I come on the podcast, 186 00:09:06,160 --> 00:09:07,920 Speaker 3: at the moment I say the word sanctions, and I'm 187 00:09:07,920 --> 00:09:10,840 Speaker 3: going to say it again. The West's sanctions on Russia, 188 00:09:10,920 --> 00:09:12,800 Speaker 3: which we've spoken about a little bit, but the short 189 00:09:12,880 --> 00:09:16,520 Speaker 3: version basically is that the sanctions mean that Russia is 190 00:09:17,200 --> 00:09:20,320 Speaker 3: selling much less of the stuff that it usually sells 191 00:09:20,320 --> 00:09:22,840 Speaker 3: to the world. That's kind of what's relevant for us here, 192 00:09:23,160 --> 00:09:26,760 Speaker 3: and that includes in Russia's case, oil, gas coal, and wheat. 193 00:09:26,800 --> 00:09:29,760 Speaker 3: They're all things that Russia supplies a lot of and 194 00:09:29,880 --> 00:09:33,760 Speaker 3: contributes to a significant part of global supply. And because 195 00:09:33,800 --> 00:09:36,280 Speaker 3: they're constrained in selling those things and they can't sell 196 00:09:36,320 --> 00:09:39,000 Speaker 3: as much of it because of these sanctions, that means 197 00:09:39,040 --> 00:09:41,760 Speaker 3: that on the global market for oil, gas coal, and 198 00:09:41,800 --> 00:09:45,080 Speaker 3: wheat there is significantly less supply, and so once again, 199 00:09:45,200 --> 00:09:47,839 Speaker 3: less supply leads to higher prices, not just for the 200 00:09:47,880 --> 00:09:50,760 Speaker 3: people who want to buy oil from Russia. So for example, 201 00:09:50,800 --> 00:09:53,400 Speaker 3: Australia doesn't buy very much oil at all from Russia, 202 00:09:53,760 --> 00:09:56,280 Speaker 3: but we're affected by it too, because you know, the 203 00:09:56,320 --> 00:09:59,480 Speaker 3: whole world's kind of trying to buy the same global 204 00:09:59,480 --> 00:10:01,440 Speaker 3: pool of oil, and that pool's just gotten a little 205 00:10:01,440 --> 00:10:04,600 Speaker 3: bit smaller because of these sanctions on Russia. So again 206 00:10:05,000 --> 00:10:07,480 Speaker 3: it's an example of something that's pushing prices up. 207 00:10:07,440 --> 00:10:09,400 Speaker 1: And then covering off the final one, which is by 208 00:10:09,440 --> 00:10:13,600 Speaker 1: no means a small problem at all. Climate change is 209 00:10:13,640 --> 00:10:17,600 Speaker 1: the kind of idea here that you know, extreme weather 210 00:10:17,640 --> 00:10:20,240 Speaker 1: events and warmer temperatures is going to affect the price 211 00:10:20,280 --> 00:10:20,679 Speaker 1: of food. 212 00:10:21,080 --> 00:10:24,400 Speaker 3: Exactly right. It's understandable. You know, we were seeing petrol 213 00:10:24,440 --> 00:10:26,120 Speaker 3: at two dollars a liter, and we're seeing all of 214 00:10:26,160 --> 00:10:29,680 Speaker 3: these kind of short term shocks, and they're catching people's attention. 215 00:10:30,280 --> 00:10:32,679 Speaker 3: It's easy to kind of miss climate change in all 216 00:10:32,679 --> 00:10:34,280 Speaker 3: of that, which is sort of the slow burn, and 217 00:10:34,320 --> 00:10:36,600 Speaker 3: it's been putting up with pressure on prices for a while. 218 00:10:36,960 --> 00:10:39,280 Speaker 3: And yes, you're exactly right. The reasons are pretty simple. 219 00:10:39,320 --> 00:10:42,319 Speaker 3: More extreme weather events, warmer temperatures. It reflects a whole 220 00:10:42,400 --> 00:10:44,839 Speaker 3: range of different crops and a whole range of different 221 00:10:44,880 --> 00:10:47,079 Speaker 3: you know, for example, coffee is one example, and one 222 00:10:47,080 --> 00:10:48,920 Speaker 3: of the reasons that the price of coffee is expected 223 00:10:48,920 --> 00:10:51,160 Speaker 3: to increase is because of a bunch of natural disasters 224 00:10:51,200 --> 00:10:55,120 Speaker 3: in Brazil that have affected coffee crops and again reduced 225 00:10:55,120 --> 00:10:57,440 Speaker 3: that supply and putting up with pressure on prices. And 226 00:10:57,440 --> 00:10:58,880 Speaker 3: that's the kind of thing that of course, you know 227 00:10:58,920 --> 00:11:00,800 Speaker 3: the nature of climate change. We know that that's only 228 00:11:00,880 --> 00:11:02,679 Speaker 3: going to kind of get worse and worse as the 229 00:11:02,720 --> 00:11:03,920 Speaker 3: planet continues to warm. 230 00:11:04,000 --> 00:11:05,920 Speaker 1: So, Tom, you've told us that our petrol is going 231 00:11:05,960 --> 00:11:07,680 Speaker 1: to get more expensive, and then you've just told me 232 00:11:07,720 --> 00:11:10,160 Speaker 1: that my cup of coffee is going to get more expensive. 233 00:11:10,200 --> 00:11:12,320 Speaker 1: That has really upset me. Leave me with a bit 234 00:11:12,360 --> 00:11:15,360 Speaker 1: of hope here. What can we do, What leavers can 235 00:11:15,440 --> 00:11:18,160 Speaker 1: we pull to try and mitigate some of these issues. 236 00:11:18,440 --> 00:11:20,240 Speaker 1: I hate to disappoint you, Sam, but I'm not sure 237 00:11:20,240 --> 00:11:21,840 Speaker 1: that I can really end this one on a note 238 00:11:21,840 --> 00:11:24,240 Speaker 1: of hope. I think one of the things about you know, 239 00:11:24,320 --> 00:11:27,160 Speaker 1: kind of global prices and the cost of living is 240 00:11:27,200 --> 00:11:30,520 Speaker 1: that Australia, being a small country, we kind of are 241 00:11:31,120 --> 00:11:34,840 Speaker 1: at the whim of these global trends that we don't really. 242 00:11:34,520 --> 00:11:37,800 Speaker 3: Have the ability to do much about. We can't really 243 00:11:37,840 --> 00:11:40,520 Speaker 3: do very much about, you know, these sort of problems 244 00:11:40,559 --> 00:11:43,800 Speaker 3: in global supply chains. Because of COVID, we can't really 245 00:11:43,880 --> 00:11:45,680 Speaker 3: do much. I mean, we are putting sanctions on Russia, 246 00:11:45,720 --> 00:11:47,440 Speaker 3: but we don't have a huge role in shaping the 247 00:11:47,480 --> 00:11:49,840 Speaker 3: direction that conflict takes. There's certainly things we can do 248 00:11:49,880 --> 00:11:52,480 Speaker 3: about climate change, but the effect of those will be 249 00:11:52,520 --> 00:11:55,000 Speaker 3: felt over a much longer window. In the short term, 250 00:11:55,360 --> 00:11:57,200 Speaker 3: there's not a heap we can do to kind of 251 00:11:57,240 --> 00:12:00,760 Speaker 3: push back against this tide, and so the focus for 252 00:12:00,840 --> 00:12:03,520 Speaker 3: the Australian government is likely to be on sort of 253 00:12:03,520 --> 00:12:06,360 Speaker 3: some short term patchwork solutions and some things that address 254 00:12:06,440 --> 00:12:09,240 Speaker 3: symptoms rather than the cure. So we're hearing a lot 255 00:12:09,240 --> 00:12:12,000 Speaker 3: of suggestions that the government is considering, for example, cutting 256 00:12:12,040 --> 00:12:14,720 Speaker 3: the tax on fuel to make petrol kind of cheaper 257 00:12:14,720 --> 00:12:17,120 Speaker 3: in the short term. That might do something in the 258 00:12:17,160 --> 00:12:19,599 Speaker 3: short term, but it has some other long term consequences 259 00:12:19,600 --> 00:12:21,640 Speaker 3: in terms of the amount of revenue the government collects. 260 00:12:21,960 --> 00:12:23,760 Speaker 3: Of course, you know there are individual options. You might 261 00:12:23,800 --> 00:12:25,680 Speaker 3: like to switch to tea instead of the morning coffee. 262 00:12:25,880 --> 00:12:28,320 Speaker 3: But I think that apart from that, there's not much 263 00:12:28,360 --> 00:12:30,800 Speaker 3: that we can do about these global tides. But the 264 00:12:30,840 --> 00:12:32,960 Speaker 3: thing that we can do, and I think the thing 265 00:12:32,960 --> 00:12:34,920 Speaker 3: that will be a big focus as we head into 266 00:12:34,920 --> 00:12:37,200 Speaker 3: the election, and something we've spoken about on the podcast 267 00:12:37,240 --> 00:12:40,800 Speaker 3: before is focus on wages growth because that's sort of 268 00:12:40,800 --> 00:12:42,880 Speaker 3: something that's a little bit more local and something that 269 00:12:42,920 --> 00:12:45,520 Speaker 3: we may be able to improve and to change. So 270 00:12:45,559 --> 00:12:49,360 Speaker 3: we've spoken before about how over the last decade, wages 271 00:12:49,400 --> 00:12:53,280 Speaker 3: really haven't been keeping pace with prices of things. Wages 272 00:12:53,280 --> 00:12:55,160 Speaker 3: have been falling behind and the cost of living has 273 00:12:55,240 --> 00:12:58,199 Speaker 3: been increasing for some time. That's a really kind of 274 00:12:58,440 --> 00:13:01,080 Speaker 3: entrenched policy problem in aust and in a lot of 275 00:13:01,240 --> 00:13:04,320 Speaker 3: countries in the West. If you fix that, if people's 276 00:13:04,360 --> 00:13:06,959 Speaker 3: wages are growing faster than the prices are going, then 277 00:13:07,000 --> 00:13:09,400 Speaker 3: you don't worry so much about that price growth. So 278 00:13:09,920 --> 00:13:12,120 Speaker 3: focusing on that wages picture I think will be a 279 00:13:12,120 --> 00:13:15,480 Speaker 3: really important thing leading into the election, because the reality is, 280 00:13:15,520 --> 00:13:17,400 Speaker 3: you know, even though governments might look at things like 281 00:13:17,480 --> 00:13:20,240 Speaker 3: fuel taxes or beer taxes or other sort of things 282 00:13:20,280 --> 00:13:22,600 Speaker 3: to kind of, you know, make people feel better about 283 00:13:22,600 --> 00:13:24,760 Speaker 3: the cost of living in the short term, the reality 284 00:13:24,800 --> 00:13:26,720 Speaker 3: is and less governments are willing to look at the 285 00:13:26,760 --> 00:13:29,760 Speaker 3: wages question and how to get wages growing again, that 286 00:13:29,840 --> 00:13:32,720 Speaker 3: there's not very much that they have the capacity to control. 287 00:13:32,760 --> 00:13:35,800 Speaker 1: Here, Tom, I'm ending that interview there because you just 288 00:13:35,840 --> 00:13:38,520 Speaker 1: told me to switch from coffee to tea, and nobody 289 00:13:38,600 --> 00:13:41,319 Speaker 1: deserves to hear that this early in the morning. That's 290 00:13:41,360 --> 00:13:43,520 Speaker 1: all we've got time for on today's episode of The Daily Ods. 291 00:13:43,559 --> 00:13:45,760 Speaker 1: Something that is free and will never change with the 292 00:13:45,800 --> 00:13:48,400 Speaker 1: cost of Living is the Daily Odds over on Instagram. 293 00:13:48,480 --> 00:13:50,839 Speaker 1: It's where you'll get your news throughout the day. We'll 294 00:13:50,840 --> 00:13:53,160 Speaker 1: see you over there and until tomorrow morning. Have a 295 00:13:53,160 --> 00:13:53,560 Speaker 1: good day.